The acetone settlement for November 2025 was concluded during the second week of December at a split of $0.41 and $0.415 per pound. The settlement for December was brought in before the holidays at $0.4125 per pound, essentially a rollover taking the average of November’s split. New year, new acetone? Eh….
The refinery grade propylene (RGP) market saw three railcar deals, 2 in December and 1 in January, since our last report. Each railcar deal escalated with the last (January) at $0.26 per pound. Polymer grade propylene (PGP) has increased slightly going into the new year. Trades are currently between $0.26-27 per pound. There continues to be hiccups at PDH units (propane à PGP) but the market has not sensed any serious shortage of PGP.
Acetone imports in November were weaker at 2,700 MT’s coming into the USA. The only bulk liquid shipment came from Europe. We have seen pricing stabilize overseas. Tariffs implemented early last year are protecting the USA from experiencing even lower prices. While we don’t sense a tightness on the domestic front, imports remain an option for buyers.
The new year is generally when price increases are announced on commodities. However, the supply/demand picture simply doesn’t warrant them for most products in 2026. As the S&P 500 index climbs to new highs, the phenol/acetone market falls to new lows, at least over the last 3 years. Construction and automotive industries must pick up for this market to see increased demand.
Amidst slightly elevated propylene prices, we will call for a very modest increase for the USA January acetone settlement. We hope everyone enjoyed their holidays and are ready to take on 2026. Glass half full (despite the definition below)!
